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Entrec Announces Its Financial Results for the Quarter Ended October 31, 2011

- Revenue up 70% over same period in prior year from legacy companies

- Net earnings $0.03 per share and adjusted EBITDA $3.0 million

- Revenue guidance increased for fiscal 2012

SPRUCE GROVE, ALBERTA--(Marketwire - Dec. 16, 2011) - Entrec Transportation Services Ltd. (TSX VENTURE:ENT) ("ENTREC" or the "Company") is pleased to announce its financial results for the quarter ended October 31, 2011. Revenue was $15.0 million, reflecting a 70% increase from the combined revenue of $8.8 million generated during the same three month period in 2010 by the legacy companies of Entrec. This significant revenue improvement was driven by increasing customer demand for ENTREC's services and improved utilization of equipment. In addition, higher service capabilities provided from recent business acquisitions and the cross-utilization of equipment among branches allowed the Company to support this increased revenue volume.

Strong revenue during the quarter resulted in adjusted EBITDA of $3.0 million (see "Non-GAAP Financial Measures") and net earnings of $0.9 million or $0.03 per share.

Positive Outlook for 2012

"The demand for heavy haul transportation services has increased significantly over the past six months as more capital projects within the Alberta oil sands region and across Western Canada come on-stream," comments Rod Marlin, ENTREC's Chairman and CEO. "Since May 12, 2011, we have provided sales quotes on customer projects in excess of $150 million. Several of these quotes have converted to committed customer projects for completion in 2012 and 2013. In addition, we expect to be awarded additional contracts related to these quotes in the upcoming months."

In 2012, ENTREC also plans to significantly increase the amount of on-site project work it does in the Alberta oil sands region. This was an area where the legacy Entrec business had very minimal work. With new locations in Bonnyville, Alberta and Fort McMurray, Alberta, the Company is well positioned to achieve a larger share of on-site project work in this important region.

"We also believe there are opportunities to continue to improve our profit margins going forward," adds Mr. Marlin. "As a result of the economic downturn over the past three years, many businesses, including Entrec, were required to accept lower customer pricing to achieve revenue and equipment utilization. Due to the long lead time of several of Entrec's customer contracts, we are still completing in 2011 certain customer projects based on pricing from 2008, 2009 and 2010. We expect our gross margins could improve in 2012 as our older customer contracts are completed or renewed at higher pricing."

Increased Revenue Guidance for Fiscal 2012

Based on current expectations for future business activity and assuming no further business acquisitions are completed, ENTREC currently estimates revenue for the year-ending December 31, 2012 will be between $65 million and $70 million. This represents an increase from ENTREC's previous revenue guidance of between $55 million and $60 million. Approximately $6 million of the increased guidance relates to expected revenue from recent acquisitions of Jay Reid Trucking Ltd. and Trak Equipment Haulers.

Further increases in ENTREC's revenue guidance for 2012 may be possible should fundamentals within the heavy haul transportation industry continue to improve. ENTREC will also continue to aggressively pursue its growth strategies in 2012. Future business acquisitions completed in fiscal 2012 will further increase its revenue estimates.

A complete set of ENTREC's most recent financial statements and Management's Discussion and Analysis will be filed on SEDAR (www.sedar.com) and posted on the Company's website (www.entrec.com).

About ENTREC

ENTREC specializes in the transportation and rigging of overweight and oversized cargo for the oil and gas, construction, petrochemical, mining and power generation industries. The common shares of ENTREC trade on the TSX Venture Exchange under the trading symbol "ENT".

Non-GAAP Financial Measures

Adjusted EBITDA is defined as earnings before interest, taxes, depreciation, amortization and stock-based compensation. In addition to net earnings, Adjusted EBITDA is a useful measure as it provides an indication of the financial results generated by ENTREC's principal business activities prior to consideration of how these activities are financed or how the results are taxed in various jurisdictions and before certain non-cash expenses such as amortization and stock-based compensation.

Please see ENTREC's Management Discussion & Analysis for the three and twelve months ended October 31, 2011 for a reconciliation of Adjusted EBITDA to net earnings, the most directly comparable financial measure calculated and presented in accordance with GAAP.

Forward-looking Statements

This press release contains forward-looking statements which reflect ENTREC's current beliefs and are based on information currently available to ENTREC. These statements require ENTREC to make assumptions it believes are reasonable and are subject to inherent risks and uncertainties. Actual results and developments may differ materially from the results and developments discussed in the forward-looking statements as certain of these risks and uncertainties are beyond ENTREC's control.

Examples of such forward-looking statements in this press release relate to, but are not limited to: ENTREC's projection that revenue for the year ending December 31, 2012 will be between $65 million and $70 million before considering the impact of future business acquisitions and that further increases in its revenue guidance may be possible should fundamentals within the heavy haul transportation industry continue to improve; expectation ENTREC will be awarded additional contracts related to the $150 million in sales quotes provided since May 12, 2011 in the upcoming months; belief that ENTREC will significantly increase its revenue from on-site project work in the Alberta oil sands region in 2012;and expectation that ENTREC's gross margin could improve in 2012 as our older customer contracts are completed or renewed at higher prices.

These forward-looking statements involve a number of significant assumptions. Key assumptions utilized in developing forward-looking statements related to ENTREC's future growth expectations include achieving its internal revenue, net earnings and cash flow forecasts for 2011 and 2012. Achieving these forecasts is largely dependent on a number of factors beyond ENTREC's control including all of the risks discussed further under the "Business Risks" section in ENTREC's Management Discussion and Analysis for the three and twelve months ended October 31, 2011. These risk factors are interdependent and the impact of any one risk or uncertainty on a particular forward-looking statement is not determinable.

Consequently, all of the forward-looking statements made in this press release are qualified by these cautionary statements and other cautionary statements or factors contained herein, and there can be no assurance that the actual results or developments will be realized or, even if substantially realized, that they will have the expected consequences to, or effects on, Entrec. These forward-looking statements are made as of the date of this press release. Except as required by applicable securities legislation, ENTREC assumes no obligation to update publicly or revise any forward-looking statements to reflect subsequent information, events, or circumstances.

Neither the TSX Venture Exchange nor its regulation services provider (as that term is defined in the policies of the TSX Venture Exchange) accepts responsibility for the adequacy or accuracy of this release.